JavaJoy Marketing Research - Case Study Example

Marketing Research Proposal to Determine If JavaJoy Should Pursue Development of Products For Consumer Market Background of JavaJoy JavaJoy is a manufacturer and distributor of high-end coffee brewing systems. Since its inception in 1980, JavaJoy has been well received by its customers, who are primarily restaurants chains and independent institutions. The organization’s vision of providing excellent brewing machines, is guided by its owner-founder, Hank Sanchez’s, exacting adherence to high standards. To deliver coffee-machines that elevate the coffee-brewing to the point where coffee-drinkers can compliment themselves on their epicurean tastes, Hank has been steering JavaJoy towards intensive product development. The focus on product development has led to the reputation of JavaJoy in the industry as a quality and innovation pioneer. However, the corresponding increases in prices of JavaJoy’s products have made it difficult for the organization to reap the maximum benefits of an expanding gourmet coffee-drinking market. With an expected further increase in the market, it is important that JavaJoy rethinks its current strategy, to remodel its value drivers and to prepare to expand to its fullest potential. For this, it is mandatory that the current, relevant, and real-time data and information is available for Hank to assess the present and future trends of the market and buyer-behavior. Though considerable knowledge has been developed by experience and practice, the data that is thus available with the managers appears to be outdated and, at times, outright irrelevant. The present Market Research proposal is therefore geared towards plugging this gap in information, and will be aimed at the gathering of latest information on the coffee-brewing market, consumer behavior, and economic and demographic trends. (case study, JavaJoy, ?) Objective of the Research: To collect information that will facilitate strategic planning by the senior level management at JavaJoy for achieving growth over the next five years in a booming market. The assessment of the demand for JavaJoy, and its competitive positioning vis-à-vis its rivals, will also form a major objective of the present market research proposal. Aim: To gather data on the current market size, market-growth potential, present and future trends in the consumer buying behavior, availability and utilization of distribution channels, scope of marketing and promotional activities, and the presence of competitors. Approach and Method The scope of the proposed research is quite diverse, as JavaJoy needs hands-on data on both the state of the economic and demographic trends that might affect its future demand. This is to be supplemented by the gauging the preferences and needs of the consumers first hand. The research is proposed to be descriptive in nature (Kothari, 1999), as the aim is to assess the existing facts regarding the market, industry and the customers. As such, the methodology to be employed will be split into two parts. The first aspect will include a literature survey that will require a thorough perusal of the government and non-government publications regarding the coffee-brewing industry parameters. This will be done with the aim enumerating the total market size, expected growth, and the present statistics regarding the size and market share of different players in the market. A study into the literature relevant to consumer behavior of the coffee drinkers, may prove revelatory of the trends to be expected in their tastes. The second aspect of the research is proposed to be carried out in the form of a primary data-collection activity. This data-collection exercise will be focused towards surveying a sample of coffee drinkers, as well as a sample of the restaurant and institutional buyers. For this purpose, two set of questionnaires will be prepared, one aimed at the actual coffee-drinkers, and the other directed towards the purchasers of the coffee-brewing machines. The questionnaire that is to be administered to the coffee-drinkers will have questions that measure the degree of involvement that the coffee-degree activity requires from the consumer. It will also try to assess their perception about different brands of the coffee-brewing machines. Most importantly, this survey instrument will be used to try and figure out if technological innovation in the coffee-brewing machines is perceived as the feature of any brand, or, are there any other factors, like the quality of the beans used in the brew, the ambience of the coffee-dispensing restaurant, or the promotional messages, that affect the consumer behavior. The above questionnaire will be a multiple choice instrument (Singh, 1998), the responses from which can be easily coded and are amenable to statistical interpretation. The sample size should be large enough (between 500 -1000) and should be open to people from all ages, gender, and professions. The second questionnaire will be directed towards the restaurant or institutional owners, and will include questions about their perception and rating of different brands of coffee-machine vendors. The rating will be required on parameters like technological innovation, appearance, advertising and promotional support, after-sales services and pricing. These rating parameters will then be weighed by the buyers’ perception of their relative importance. In addition to the above, statistics can be attained about the current use of different brands and this can be made as the premises for assessing the current market share of different players. It will also include questions about the different distribution channels that coffee-machine buyers come across in their dealings with different brand of vendors. The above data collection should employ a sample size of over 500, the questions again, will be primarily close ended. It may, however, include an open-ended question about the buyers expectation from a coffee-machine vendor, and his assessment of the current demand for the machines for the gourmet coffee market. The data thus collected can also be used to extrapolate about the future demand, overall, as well as of JavaJoy’s products. The above proposed research is, as already stated, rather diverse. It is therefore very important that different aspects of the research are scheduled efficiently, data-collection made in a professional manner, and all the matter collated for in a lucid manner to facilitate reporting. Reporting and Presentation The that will be obtained as a result of the above literature survey will be collated to present a picture of the current and future state of the industry and the competitive market. The results of the primary survey will be tabulated and computations done to arrive at the extrapolated figures of current market share of JavaJoy, estimates of the future demand. The use of graphs and charts will be made to enunciate the perception of the consumers regarding the different brands, and of the utility of the different attributes of the product, as they perceive it. (Tull and Hawkins, 2000) Utility of the Data to Guide in the Development of Competitive Advantage for JavaJoy The above market research will generate adequate and relevant information that can guide Hank in assessing his present strategy of product development. The framework of consumers’ perception about the desirable features of a coffee-machine will help in focusing upon the utility of continuously investing in the product development projects. The research also has the potential to reveal the availability and scope of using different channels of distribution, different pricing and promotional strategies, and different adopting brand images. This information can be useful if JavaJoy decides to alter its present stance and thinks of re-branding itself. In addition to the above, the economic, demographic, and the market parameters that the literature survey will bring to light, will assist him in understanding the market and consumer trends, and in streamlining JavaJoy’s pricing distribution, and promotional strategies so as to enhance its competitive advantage (Kotler, 1999). The proposed research is expected to be time consuming, as it involves two set of data to be collected via primary survey, as well as, a comprehensive literature review. However, the time or expenses will be more than rewarded by the generation of current, relevant and acute information on which a future strategy for developing the competitive advantage of JavaJoy can be reliably based. References 1. Case Study, JavaJoy, ?) 2. Kothari, 1999, Research Methodology,Wishwa Prakashan, India. 3. Singh, 1998, Tests, Measurements and Research Methods in Behavioral Sciences, Bharati Bhawan, India. 4. Tull and Hawkins, 2000, Marketing Research: Measurement and Methods, Prentice-Hall of India Pvt. Ltd., India. 5. Kotler, 1999, Marketing Management, Prentice-Hall of India Pvt. Ltd., India. Read More